Euroconsult Report Sees Robust Prospects for Satellite in Sub-Saharan Africa – Satellite Today

VSAT Tanzania Africa

A VSAT in Tanzania. Photo: Chris Gansen (Flickr)

[Via Satellite 04-03-2015] The transition to digital television, increasing growth of mobile services, and the burgeoning connectivity needs of sectors such as energy, banking and mining, are fueling demand for satellite services in Sub-Saharan Africa, which Euroconsult expects will remain healthy for many years to come. The research firm’s newest report, “Prospects for Satellite Communications & Broadcasting in Africa” predicts a Calculated Annual Growth Rate (CAGR) of 11 percent for capacity leased over the next decade.

Euroconsult found that Sub-Saharan Africa’s overall satellite capacity use increased 11 percent CAGR from 2009 to 2014, overcoming the challenge of terrestrial fiber network build-out in many areas, as well as the decrease in international trunking demand. The firm anticipates new enterprise market hot spots joining historically strong VSAT markets such as South Africa, Nigeria, Angola, Kenya and Tanzania, along with greater trunking demand from landlocked countries such as the Democratic Republic of the Congo and South Sudan at least in the short to medium term while fiber penetration remains limited.

“The tripling of TV signals in the last five years, growth in cellular backhaul requirements and the addition of more than 15,000 VSATs for various vertical segments have all contributed to the emergence of new requirements,” said Pacome Revillon, CEO of Euroconsult and editor of the report, adding that “The significant addition of satellite capacity supply has resulted in a fill rate decrease and in greater competition and pricing pressure.”

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